Pension and Post-Retirement Benefit Plans

3 Months Ended

Mar. 28, 2020

Retirement Benefits [Abstract]

Pension and Post-Retirement Benefit Plans

Pension and Post-Retirement Benefit Plans

As a result of the Acquisition, the Company acquired a number of post-employment plans in Germany, as well as a number of smaller post-employment plans in other countries, including both defined contribution and defined benefit plans. The defined benefit plans expose the Company to actuarial risks such as, investment risk, interest rate risk, life expectancy risk and salary risk. The characteristics of the defined benefit plans and the risks associated with them vary depending on legal, fiscal and economic requirements.

Components of Net Periodic Benefit Cost

Net periodic benefit cost for the Company's pension and other post-retirement benefit plans consisted of the following (in thousands):

	Three Months Ended
	March 28, 2020			March 30, 2019
Service cost	$	352		$	356
Interest cost	365			371
Expected return on plan assets	(669		)	(604		)
Amortization of actuarial loss	413			418
Total net periodic benefit cost	$	461		$	541

The components of net periodic benefit costs other than the service cost component are included in Interest and other, net, in the Company’s condensed consolidated statements of operations.

Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10% of the greater of the pension benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the pension plan participants. All components of net periodic benefit cost are recorded in operating expense of the Company's condensed consolidated statements of operations.